Hong Kong and Guangdong should work more closely together to tackle regional competition, Greater Pearl River Delta Business Council Chairman Dr Victor Fung says.

Speaking after the council's first meeting today, Dr Fung said development of the Pearl River Delta region is vital to our long-term development. He hopes Hong Kong will become a greater platform through which enterprises in the region can enter the international market.

Noting small and medium-sized enterprises form the major part of our economic structure, Dr Fung said one of the main tasks of the council is to create business opportunities for these firms.

The council will look at:

* creating more business opportunities for Hong Kong enterprises and look for ways to attract enterprises in the delta region to invest in our city;

* assisting export-processing factories in the region to enter the Mainland domestic market; and,

* studying ways to facilitate trade in the region.

The council is divided into six working groups and will meet with related organisations and officials in due course. It will hold four meetings each year and will issue an annual report to inform the public of its work.